Tax authority HMRC is urging Britons to check if they could be owed an average of £2,000 in “forgotten” savings.
The money is currently lying dormant in Child Trust Funds (CTFs), and almost 430,000 people were reportedly eligible to claim theirs in September 2023.
In a new post on social platform X, HM Revenue and Customs (HMRC) wrote: “Were you born between 1 Sep 2002 and 2 Jan 2011?
“Check if you have forgotten savings in a Child Trust Fund – worth around £2,000 on average (T&Cs apply). Claiming your Child Trust Fund is simple. Find out how to do it yourself and keep every penny.”
Child Trust Funds are long-term, tax-free savings accounts. The Government set them up for every child born between September 1, 2002, and January 2, 2011, and contributed an initial deposit of at least £250. funds can be withdrawn once the account matures when the child turns 18.
How to find a Child Trust Fund
If individuals know their account provider, they can directly contact them to access their Child Trust Fund savings.
If they are uncertain, they can reach out to HMRC to locate it. The tax authority can then provide information about where the account was originally opened.
HMRC also offers a free tool people can use to find a Child Trust Fund.
Customers must be a parent or guardian of a child under 18, or aged 16 and over looking to locate their own trust fund.
People will be asked for their own National Insurance number or, if searching for the child, the child’s National Insurance number.
HMRC said it typically responds within three weeks of the request with a letter enclosing the details.
Those who don’t get a response within that time frame can write to HMRC instead.
Adam Pope from Spencer Churchill Claims Advice noted that the sizeable sum forgotten to CTFs emphasises the wider issue of unclaimed support.
With £23billion currently being collectively missed in benefits, Mr Pope said: “It’s a substantial loss for working taxpayers and their families who are entitled to this important financial help.”
He added: “For example, the Child Trust Fund (CTF) is worth about £1.7billion in nearly a million accounts but is largely neglected – a major oversight.
“Even though the CTF was meant to give young people a financial head start, many beneficiaries don’t even know it was available to them.
“Stronger regulations and industry standards are key to solving the widespread issue of unclaimed funds. Banks and financial institutions must take some responsibility for reconnecting people with their money, so they are held accountable for managing inactive accounts and unclaimed benefits.”
